The Government of India has approved the Central Sector Scheme for Industrial Development of Jammu and Kashmir. The scheme is approved with a total outlay of Rs. 28,400 crore up to the year 2037.
The Government has formulated the New Industrial Development Scheme for Jammu and Kashmir (J&K IDS, 2021) as the Central Sector Scheme for the development of Industries in the UT of Jammu and Kashmir.
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This will generate employment which directly leads to the socio-economic development of the area.
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Features of the Scheme:
- It is made attractive for both smaller and larger units. Smaller units with an investment in plant and machinery up to Rs. 50 crore will get a capital incentive up to Rs. 7.5 crore and get capital interest subvention at the rate of 6 percent for a maximum of 7 years.
- The scheme aims to take industrial development to the block level in UT of J&K, which is the first time in any Industrial Incentive Scheme of the Government of India, and attempts for a more sustained and balanced industrial growth in the entire UT.
- Scheme has been simplified on the lines of ease of doing business by bringing one major incentive- GST Linked Incentive- that will ensure less compliance burden without compromising on transparency.
- Scheme envisages the greater role of the UT of J&K in registration and implementation of the scheme while having proper checks and balances by having an independent audit agency before the claims are approved.
- It is not a reimbursement or refund of GST but gross GST is used to measure eligibility for industrial incentives to offset the disadvantages that the UT of J&K faces.
- Earlier schemes though offered a plethora of incentives. However, the overall financial outflow was much lesser than the new scheme.
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-PTC News
